Correlation Between Eastroc Beverage and Industrial
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By analyzing existing cross correlation between Eastroc Beverage Group and Industrial and Commercial, you can compare the effects of market volatilities on Eastroc Beverage and Industrial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eastroc Beverage with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Industrial.
Diversification Opportunities for Eastroc Beverage and Industrial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastroc and Industrial is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Eastroc Beverage is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eastroc Beverage Group are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Industrial go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Industrial
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 2.22 times more return on investment than Industrial. However, Eastroc Beverage is 2.22 times more volatile than Industrial and Commercial. It trades about 0.22 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.24 per unit of risk. If you would invest 22,033 in Eastroc Beverage Group on September 13, 2024 and sell it today you would earn a total of 2,217 from holding Eastroc Beverage Group or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Industrial and Commercial
Performance |
| Timeline |
| Eastroc Beverage |
| Industrial and Commercial |
Eastroc Beverage and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Industrial
The main advantage of trading using opposite Eastroc Beverage and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Industrial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Industrial will offset losses from the drop in Industrial's long position.| Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Kweichow Moutai Co | Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. China Mobile Limited |
| Industrial vs. Pengxin International Mining | Industrial vs. Qilu Bank Co | Industrial vs. Tibet Huayu Mining | Industrial vs. Chengtun Mining Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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